Everything You Need to Know About Your Small Business Credit Score

If you’re in the process of applying for a small business loan, something called “the SBSS score” has probably popped up in literature about credit screenings. So what is it?

The FICO SBSS score (Small Business Scoring Service), simply put, is a credit score that, in addition to your personal FICO score, determines the risk of U.S. small business credit applicants. While the scoring system has been around since 1993, it only recently gained popularity when the Small Business Administration (SBA) started requiring it for their 7(a) loan application pre-screening. How does it work? Let’s look in depth. (more…)

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How Young Entrepreneurs Can Overcome Poor Credit

One of the biggest challenges for young entrepreneurs when they are trying to start up a business is of course securing sufficient funding. The most common hurdle is the fact that they have not yet managed to build up a good credit rating. Let’s take a look at some of the ways to get ahead despite a poor credit rating.

A credit score is fairly important when it comes to raising finances for your business, the higher the score the easier it will be to get  loan or some other form of financing. However, it is not the be all and end all – you can still get funding with bad credit. The key is choosing appropriately so that you can begin to build up your credit so that when the time comes to move to the next level your business will have sufficient credit to do so.

Do Not Depend On Credit Cards & Bank Loans

It has recently been suggested that only 25 percent of entrepreneurs use traditional credit cards and bank loans to meet their start-up costs. That is actually great news for those seeking funding as it means that the majority of entrepreneurs are getting money from sources that are not so dependent on credit scoring. There are plenty of ways to fund a start-up which do not involve taking out a bank loan.

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The Predicament of Personal Guarantees For Business Credit

So you have your new corporation or LLC formed… great! Now the next task on your list might be to build credit for it, but how do you do that?

In many ways, building credit for a new business is much harder than building personal credit. With the latter, there are a plethora of entry-level cards for students and people with no credit history. Unfortunately, you will be unlikely to find starter cards like that for businesses.

Pre and Post Recession
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